-19-
9. Whether Elements of Personal Pleasure or Recreation Are
Involved
We next examine whether elements of personal pleasure or
recreation were involved in the activity. The presence of
recreational or pleasurable motives in conducting an activity may
indicate that the taxpayer is not conducting the activity for
profit. Sec. 1.183-2(b)(9), Income Tax Regs. The fact that the
taxpayer derives personal pleasure from engaging in the activity
is not sufficient to cause the activity to be classified as not
engaged in for profit, however, if the activity is, in fact,
conducted for profit as shown by other factors. Jackson v.
Commissioner, supra; sec. 1.183-2(b)(9), Income Tax Regs.
Petitioner has been interested in cars throughout his life
and obviously enjoys drag racing. Petitioner also testified,
however, that there were aspects of the activity that he did not
enjoy, including the heat on the track and the multiple layers of
protective clothing he was required to wear. Petitioner further
emphasized that, when he was unable to produce a profit from the
activity, he stopped the activity. He testified that he did not
enjoy it enough to continue without the possibility of financial
gain. Although petitioner may have derived some pleasure from
the drag racing activity, this factor does not outweigh the other
factors indicating that petitioner engaged in the drag racing
activity for profit.
10. Conclusion
Considering all of the facts and circumstances of this case,
we find that petitioner has proved that he engaged in the drag
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